Consider the economy described in problems 2.11. Suppose that annual growth in total factor productivity is 2%.

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Consider the economy described in problems 2.11. Suppose that annual growth in total factor productivity is 2%.
a. What is the steady-state growth rate of real GDP?
b. What is the steady-state growth rate of the capital–labor ratio?

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Macroeconomics

ISBN: 9780132109994

1st Edition

Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty

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Question Posted: Feb 04, 2016 06:42 AM

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Consider the economy described in problems 2.11. Suppose that annual growth in total factor productivity is 2%.

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a From the Appendix g...View the full answer

Macroeconomics

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